RBI gives approval to SMBC Japan to acquire upto 24.99% stake in Yes Bank

Yes Bank has informed the stock exchanges that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire up to 24.99% stake in Yes Bank. This approval, granted by RBI will remain valid for one year.

It is important to note that RBI has clarified that even after acquiring this significant stake, SMBC will not be treated as a promoter of Yes Bank. This distinction means that while SMBC will become a large shareholder, it will not have promoter-level control or responsibilities within the bank.

The plan for this stake purchase was first announced on May 9, 2025. Under the deal, SMBC will acquire 20% stake in Yes Bank through a secondary transaction. This includes buying 13.19% shares from the State Bank of India (SBI) and another 6.81% shares from seven other banks — Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

However, RBI’s approval comes with certain conditions. The transaction must comply with several laws and regulations including the Banking Regulation Act, 1949, RBI’s directions on shareholding in banks, the Foreign Exchange Management Act, 1999, and other applicable rules. RBI has also imposed conditions such as a lock-in period on the acquired shares, and any future transactions will require the regulator’s approval.

The Japanese lender announced in May that it will acquire a 20% stake in Yes Bank for ₹13,482 crore, in the largest cross-border investment in the Indian banking sector. SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, the second largest banking group in Japan with assets of $2 trillion at the end of December. Then in July, Reuters reported that SMBC sought approval for an additional 4.9% stake in Yes Bank.